August 09, 2006
August 9, 2006
Automaker's Planned $1 Billion Investment to Secure 56,200 Direct and Indirect Jobs in State
Governor Jennifer M. Granholm and Michigan Economic Development Corporation President and CEO James C. Epolito today announced an incentive package approved by the MEDC to encourage Ford Motor Company to make new investments of up to $1 billion in Michigan facilities for flexible manufacturing and advanced powertrain technologies
If approved by the company, the project will retain a total of 56,200 Michigan jobs, including up to 13,740 jobs directly by Ford.
“There is no vision for Michigan’s new economy that does not include Ford cars and trucks designed, engineered and made in Michigan,” Granholm said. “The company’s consideration to invest more than $1 billion in its Michigan facilities is a testament to our first-class work force and our pro-business environment. We’ll continue to fight to keep these jobs in Michigan.”
The MEDC approved a Single Business Tax credit valued at more than $151 million over 20 years to win the company’s investment.
“Ford is proud to be part of this great state, and our work to keep Ford’s future a huge part of Michigan’s future underscores our serious commitment to the people and the communities that have helped make this company great for more than a century,” said Mark Fields, Ford’s president of The Americas. “We thank the people of the state of Michigan for their support of the ‘home team’ and for believing in the importance of American auto companies.”
A University of Michigan economic analysis estimates that increased economic activity created by the investment would save an additional 42,460 indirect Michigan jobs in addition to the up to 13,740 retained directly by the company. The project is expected to generate more than $62 billion in personal income for Michigan workers over the life of the tax credit.
“Ford is a cornerstone of Michigan’s economy, with its significant annual investment in research and development and manufacturing presence and $22 billion in purchases from Michigan-based suppliers,” Epolito said. “This reminds the world that Michigan is the automotive place to be and the future of the industry is being shaped right here.”
Ford Motor Company is the world’s second-largest producer of cars and trucks combined. Fords sells vehicles in more than 200 countries and territories around the world, and has manufacturing facilities on six continents. In 2005, the company sold 6.8 million vehicles and employed 300,000 people worldwide.
In her 2006 State of the State address, Granholm emphasized the importance of making Michigan a global economic powerhouse in the 21st century. Since January 2005, the Governor and the MEDC have announced the creation or retention of more than 146,000 jobs as a result of targeted assistance provided by the MEDC.
The Michigan Economic Development Corporation, a partnership between the state and local communities, promotes smart economic growth by developing strategies and providing services to create and retain good jobs and a high quality of life. For more information on the Michigan Economic Development Corporation’s initiatives and programs, visit the Web site at www.michigan.org.
Ford Motor Company
Economic Analysis
Summary Estimates
(All estimates in 2006 dollars)
TOTAL JOBS RETAINED 56,200
Direct 13,740
Indirect 42,460
NET POSITIVE STATE REVENUE IMPACT $4,282,570,000
Revenue Foregone 151,236,000
Revenue Gain 4,433,806,000
Average Wage 960
Personal Income Generated Over Life of
the 20-Year Tax Credit Agreement $62,881,940,000
